Last up is Lowe's (LOW), another big-name stock that's looking "toppy" right now. Lowe's has been riding a rising tide of sentiment for anything related to building -- and as the nation's number-two home improvement retailer, the 20% rally that shares have seen in the last year has been deserved. But a double top pattern in shares makes it look like the uptrend could be coming to an end -- at least temporarily.
The double top is a setup that's formed by two swing highs that hit their heads at approximately the same price level. The sell signal comes on a breakdown below the near-term support level for shares, currently right at $36. If shares slip below that price, we've got a sell signal for shares.
I still think that building stocks look attractive right now -- and in fact, top rival Home Depot (HD) isn't looking toxic in April. But it's important to remember that you can't fight the tape, and Lowe's is showing traders some bearish price action right now.To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV